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Home Faq's

How can I reduce my Homeowners Insurance premium?

Install an Alarm System - Insurance Companies offer up to a 24% discount for installing a Central Station fire and burglar alarm system. Central Station means your home is monitored by a company such as ADT or Brinks and in the event of a fire or burglary, they notify the proper authorities. If you live in an apartment, condo or co-op, and your building is alarmed(not just smoke detectors), you should receive a credit. As the association or building manager for a copy of their alarm certificate and submit it to your company.

Higher Deductibles=Lower Premiums - Insurance companies reward us with lower premiums for taking a higher level of risk(higher deductibles). In some cases the premium can be substantial. If raising your deductible from $100 to $500 saves you $110 per year, and you haven't had a claim in 20 years, how much would you have saved??? In today's homeowners insurance climate, having two or more claims in three years can get you canceled. You ask "what do I have insurance for"? The answer is.. to restore your home to it's condition prior to the fire, burglary or other covered loss.

Insurance companies in many states are unable to raise your premiums after you put in several claims- Their only recourse is to cancel your policy. By the same token, many companies offer a claim free discount. The time to shop for a better rate is not after you have had a claim.

Renovation Credits - Most insurance companies offer a credit to homes that have been completely renovated. Complete means just that, interior walls, wiring, plumbing if other than copper or PVC, and new roof. If you purchased an old home, then renovated much of it, call your insurance agent or broker as your home may be eligible for a renovation credit or better rating tier(many companies have different rates based on the age or proximity to water of a home).

Non-Smoking Household - If no one in your house hold smokes, inquire as to the availability of a non-smoking household credit.

Multi-Policy Discounts - Placing your Auto & Home insurance with the same company can bring a 5-10% discount on both policies(varies by company).

Frame vs. Brick - Check your policy to see if your home's construction class is correct.

Underinsured vs. Overinsured - If you believe your home is insured for too much, supply your agent or broker with a copy of your survey or building plans and ask that your home be re-estimated. Be prepared for the possibility that your home is not currently being insured for enough. Market value is not replacement cost. If you live in a depressed area, but have a 6 bedroom 3 bath house, the statement "but I couldn't sell it for that" is not relevant. If your home is underinsured,- you put a full dormer on two years ago, and never notified the company, in the event of a loss, you will probably lose the battle. It is your responsibility to notify the company regarding any material change to your residence. Many people insure their homes to an amount equal to their mortgage. THIS IS WRONG. Rather than fight with the adjustor on your lawn after a fire, insure your home correctly. The premium difference is minimal in most cases. Besides, who else will replace your $100,000 home for $390 per year?

Auto Faq's

I have an older car whose current market value is very low - do I really need to purchase automobile insurance?

Most states have enacted mandatory insurance laws that require drivers to have at least some automobile liability insurance, BI/PD. These laws were enacted to ensure that victims of automobile accidents receive compensation when their losses are caused by the actions of another individual who was negligent. Except for the minimum liability coverages that you may be required to purchase, many people with older cars decide not to purchase any of the physical damage coverages. It is often the case that the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car's market value less the deductible. Many people forgo the Comp/Coll coverages because of the relatively low values of their automobiles

How can I lower my automobile insurance rates?

There are a number of things you can do to lower the cost of your automobile insurance. The easiest thing to do is to shop around. It is not surprising to find quotes on automobile insurance that can vary by hundreds of dollars for the same coverage on the same car. When you shop, be careful to make sure each insurer is offering the same coverage. Another way to lower the cost of your automobile insurance is to look for any discounts that you may qualify for. For example, many insurers will offer you a discount if you insure multiple cars under the same policy, or if you have had a driver education class in the last five years. Be sure to ask your agent or your company about their discount plans. Another easy way to lower the cost of your automobile insurance is to increase the deductible. Simply raising your deductible from $250 to $500 can lower your premium sometimes by as much as five or ten percent. However, you should be careful to make sure that you have the financial resources necessary to handle the larger deductible.

Suppose I lend my car to a friend, is he/she covered under my automobile insurance policy?

Whenever you knowingly loan your car to a friend or an associate, he or she may be covered under your automobile insurance policy. In fact, even if you do not give explicit permission each time a person borrows your car, they may be covered under your automobile insurance policy as long they had a reasonable belief that you would have given them permission to drive the car. If you are carrying a named-operator policy, only the individuals named on the policy are covered on your car with your policy. Although often less expensive, a named operator policy should be clearly disclosed before you purchase the policy.

What coverage does my automobile insurance policy provide me when I rent a car?

The answer to this question is not as easy as it once was. In the not-too-distant past, most automobile insurance policies would extend coverage to rental cars whenever you rented one. This is not quite true anymore. In most cases, your personal automobile insurance policy will provide coverage only when you are renting a car on vacation. Many insurance companies no longer extend personal automobile insurance coverage when you are traveling on business. The best way to find out what rental car coverage you have under your automobile policy is to call your insurance company.

What is the difference between collision physical damage coverage and comprehensive physical damage coverage?

Both collision and comprehensive are often referred to as Comp/Collision (Comp/Coll) coverage. Collision is defined as losses you incur when your automobile collides with another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage. While Comprehensive provides coverage for most other direct physical damage losses you could incur. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage. It is important to know the differences between the collision and comprehensive coverages for a couple of reasons. First, in order to make an informed purchasing decision about these optional coverages, you need to know the difference between them. Second, the deductibles under the collision and comprehensive coverages are often different in amount.

What should I do if I have an accident? The duties you need to perform after you have an accident are prescribed both by state law and by terms of your contract.

• The first thing you should do is make sure everyone is all right and call an ambulance if one is needed.
• For most accidents in most states, the police should be notified.
• Third, you should give the other driver(s) involved in the accident your name, address, telephone number, and the name of your insurance company and/or your insurance agent. You also need to get this same information from the other driver(s).
• At the first opportunity, you should contact either your insurance agent or your insurance company to notify them that you have been involved in an accident.
• Finally, there are a number of conditions in the insurance contract that you must satisfy in order to receive compensation from your insurer. For example, you need to cooperate with your insurer during any investigation undertaken during the claims settlement process.

Why does the premium for my automobile insurance go up if I have an accident or if I get a ticket?

Current school of thought amongst Actuaries and statisticians who have studied the claiming behavior of people involved in accidents is that people who have either had an accident or received a ticket recently are more likely to have another accident in the next couple of years than people whose recent driving record has been incident free. Although there is another school of thought that indicates that a driver with a recent accident or violation is likely to be more careful and thus more desirable as an insured. There can be few assumptions made with regard to this question and thus the need to continually assess your insurance costs be shopping around.

Insurance companies use this information not to punish people who have had an accident, but to charge them the premium that most accurately reflects their likelihood of having an accident. People who are more likely to have accidents should reasonably be expected to pay higher premiums.